Harris Corp.Find Ratings Reports
HARRIS CORP's gross profit margin for the third quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.65% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY18||Q3 FY17|
|Net Sales ($mil)||1568.0||1489.0|
|Net Income ($mil)||201.0||85.0|
|Balance Sheet||Q3 FY18||Q3 FY17|
|Cash & Equiv. ($mil)||443.0||302.0|
|Total Assets ($mil)||10070.0||11107.0|
|Total Debt ($mil)||4219.0||4213.0|
|Profitability||Q3 FY18||Q3 FY17|
|Gross Profit Margin||39.48||40.09|
|Return on Assets||6.27||5.23|
|Return on Equity||21.51||21.07|
|Debt||Q3 FY18||Q3 FY17|
|Share Data||Q3 FY18||Q3 FY17|
|Shares outstanding (mil)||118.55||121.74|
|Div / share||0.57||0.53|
|Book value / share||26.46||23.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||797937.0||724649.0|
BUY. HARRIS CORP's P/E ratio indicates a premium compared to an average of 28.00 for the Aerospace & Defense industry and a premium compared to the S&P 500 average of 24.78. To use another comparison, its price-to-book ratio of 5.92 indicates a significant premium versus the S&P 500 average of 3.22 and a significant discount versus the industry average of 52.86. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, HARRIS CORP seems to be trading at a premium to investment alternatives within the industry.
|HRS 28.24||Peers 28.00||HRS 58.48||Peers 19.94|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
HRS is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HRS is trading at a significant premium to its peers.
|HRS 19.96||Peers 21.72||HRS 1.06||Peers 1.51|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
HRS is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
HRS trades at a significant discount to its peers.
|HRS 5.92||Peers 52.86||HRS 13.26||Peers 11.71|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
HRS is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
HRS is expected to have an earnings growth rate that exceeds its peers.
|HRS 3.07||Peers 2.14||HRS 2.83||Peers 7.56|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
HRS is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
HRS significantly trails its peers on the basis of sales growth